I’ve overheard a lot of baby boomers talking about how they plan to retire in other countries where they can live like kings on their Social Security benefits from America. A member of Generation X, I feel optimistic about my retirement outlook. I feel fortunate to be able to retire in Florida in another 25 years. According to a recent article by Forbes, Americans are well prepared for retirement compared to retirees in other parts of the world. The article cited a Retirement Readiness Survey released by Transamerica Center for Retirement Studies and Aegon. The survey polled people in 15 different countries including China, Germany, Brazil, Canada, Sweden, the United Kingdom and the United States. Even though I know Gen-X’ers will probably face a 30 percent cut in Social Security benefits, I’m going to prepare for the worst possible economic situation.
Preparing for a gloomy prospects
According to the survey, more than half the respondents think younger generations will be even worse off financially than the current retirees. For me, the worst case scenario is that I am forced to live off my 401(k) and Roth IRA with no Social Security income. Even if Social Security continues, it may be set aside for only the poorest senior citizens with no other source of income. I’m keeping a diversified portfolio so I can grow my retirement account in goods times and bad times. By living in the United States, I have the freedom to manage my own finances and access online trading accounts with a discount brokerage firm.
Paying off my Florida home
Another reason I’m financially ahead by retiring in the United States is because of the low real estate costs. I didn’t buy a home that was in foreclosure, but I did help a relative find a short sale deal in Florida. Even though I purchased a Florida home during the housing bubble, I’ll be able to retire in it mortgage free. Having a paid-off home in Florida means I’ll have extra money if I want to travel to other countries.
Staying near family and friends
I rather retire near my family and friends who care help take care of me if I am ill in retirement. A recent article by Next Avenue points out that some Americans are finding ways to retire overseas on small annual budgets of less than $25,000. Some of the popular retirement spots include Panama, Ecuador, Mexico and Portugal. I’m not interested in dealing with language barriers and other customs and laws. I feel comfortable with the medical care provided in my community.
I think America will be a very different place when I retire in another 25 years. I’m glad a lot of baby boomers want to move overseas in retirement because is under so much financial pressure as more than 10,000 retire each day. Some people call the boomers the “worst generation ever” in contrast to their parents who were part of the “greatest generation ever.” It seems generations go in cycles, which means Generation Z will be the next great generation. I will be happy to retire in America when my children’s generation is in charge, and the boomers are just a blurb in the history cloud.
More from this contributor:
I’m not Retiring until my 80s
My Slacker Path to Retirement
My Home, Not Its Equity Will Matter in Retirement